The processed and packaged food industry is witnessing significant growth in India owing to changing consumer lifestyle and demand for convenience food. Evolving taste preference of consumers, the introduction of sugar-free, digestive, multigrain & oat biscuits as well as the availability of numerous product variants such as cookies, cream & center-filled biscuits, and crackers are some of the key factors which have fueled the demand for biscuits in the country. Additionally, increasing disposable income, improving rural distribution network, attractive packaging along e-retailing of biscuits are further complementing the growth of the biscuits market in India.
According to 6Wresearch, India biscuits market is projected to reach $8.2 billion by 2023. The plain biscuits segment captured the majority of the market share in 2016, however, cookies and sandwich biscuits are expected to exhibit a high growth rate during the forecast period. In terms of center-filled biscuits, the segment is majorly dominated by the urban population. Further, non-premium biscuits accounted for the majority of the revenue share in 2016, nevertheless, premium biscuits are gaining huge acceptance in Tier-I & II cities.
According to Anuj Mehrotra, Senior Research Analyst, Research and Consulting, 6Wresearch, "Implementation of uniform Goods & Services Tax (GST) of 18% across all biscuit segments in 2017 is likely to impact the overall growth of the industry post-2017. This would pose a greater challenge for local players of plain biscuits who are majorly targeting the rural market. Further, comparatively lower tax rates on namkeens, wafers, and other snack items are likely to hinder biscuits market growth over the coming years."
"Additionally, gifting options pertaining to high-end premium cookies is a key trend prevalent in metro cities owing to its longer shelf life as compared to chocolates and sweets. Additionally, among all distribution channels in Tier-I cities, supermarkets and hypermarkets registered significant contributions. However, grocery stores bagged the highest revenue share in the overall market due to huge presence in both urban and rural areas," Anuj concluded.
According to Suman Gautam, Research Associate, Research and Consulting, 6Wresearch, "Premiumization of Biscuits is a major trend witnessed in the country. With increasing purchasing power, consumers are readily paying for taste and quality products. For instance, "Parle" which previously focused on mass marketing of products especially plain biscuits is now targeting the niche market as well. The introduction of Parle’s "Milano" cookie is an example of the growing demand for center-filled cookies in the country. Further, recently, in the mid of 2017, "Cremica" introduced its premium cookie, "Golden Bites" in response to growing consumer demand for taste and indulgence. The market is rapidly evolving as per consumers changing taste preference towards different variants of biscuits; the market players are also coming up with product innovation and promotional strategies to reap out the benefits."
"Although, biscuits consumption is majorly accounted to urban consumers, however, with improving warehouse & storage facilities across rural areas, the market is registering immense growth opportunities for biscuits market players. Additionally, a growing number of health-conscious population in the country, low calorie, low sugar, multigrain, and oats biscuits are gaining acceptance across Tier-I cities," Suman added.
Some of the major players in the India Biscuits market include Parle Products Pvt. Ltd, Britannia Industries Ltd, ITC Ltd, Mondelez India Foods Ltd, Anmol Industries Ltd, Priyagold, and Unibic Foods India Pvt. Ltd, United Biscuits Pvt. Ltd and Cremica Food Industries Ltd.
"India Biscuits Market (2017-2023F)" provides an in-depth analysis with 30 figures and 9 tables covered in 115 pages. The report estimates and forecasts the overall India biscuits market by Types, Category, Distribution Channels, and Regions. The report also offers insights on the competitive landscape, companies benchmarking, company profiles, market drivers, and restraints.
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